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CHANDLER, AZ-A fund sponsored by the California State Teacher’s Retirement System and Waterton Associates LLC beat out close to a dozen offers to acquire the class A, 512-unit Biscayne Bay Apartments. Seller Falcon Southwest Development Co. and Cargill Inc. sold the complex for $61.9 million following a two-year hold.

Bob Bruno, partner with Hendricks and Partners’ Phoenix office, tells GlobeSt.com that the transaction was purely a profit play for the Austin, TX seller. He goes on to say that the asset at 300 E. Warner Rd. attracted a dozen bona fide offers, but the Waterton/CalSTRS Fund IX BB Chandler LLC put 50% down and assumed the 5.15% loan, actions which placed it ahead of other buyers.

“They got an excellent buy out of that,” says Bruno, who worked with Hendricks & Partners principal Mark Forrester on the transaction. Falcon Southwest and Cargill acquired the Biscayne Bay Apartments in May 2005 for $46 million.

At the time of the buy, the six-year-old complex was 95% occupied. Though current occupancy is at 90%, Bruno indicates there is little cause for alarm. “There are a lot of new buildings going up in the Chandler area,” he says, adding that the new owners will make slight upgrades, and Waterton Associates will handle the management side.

Both buyer and seller continue seeking additional acquisitions, mostly class A apartments, in the area, Bruno says.

Situated on 30.08 acres, Biscayne Bay has 40 two-story buildings offering one-, two- and three-bedroom units. The rent ranges from $820 to $1,475 and in size from 740 sf to 1,320 sf.

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